U.S. Global income down slightly

San Antonio’s formidable investment “boutique,” U.S. Global Investors Inc. reported a slight dip in earnings for the third quarter of 2008.

Net income for the quarter ended March 31, 2008 was $2.12 million, down 11.2 percent from a year earlier. Net income per share was 14 cents, down 12.5 percent from a year earlier. Revenue for the quarter was $12.26 million, down 1.4 percent from the same period last year.

Average assets under management during the quarter were up 14 percent to $5.5 billion.

Subprime investments hurt U.S. Global, but not because the company invested in that market, according to CEO Frank Holmes.

“U.S. Global Investors has no investments in subprime or structured-finance products, but our funds were among those hurt when highly leveraged banks, brokerages and hedge funds were forced to sell good-quality investments because they had to raise cash quickly in this tight credit environment,” Holmes said in a statement. “There’s a lot of worry about how the U.S. economy is performing, and that pessimism is so strong for many people that they are blinded to the strength of the broader global economy.”